Bitcoin IRA

Bitcoin IRA: An Exciting Retirement Investment Opportunity

One of the best ways to reap the benefits that bitcoin investments can offer is to hold them in an individual retirement account (IRA). When managed within a self-directed IRA, bitcoin IRAs enable you to invest in a special assets that most conventional retirement funds cannot include.

To make the most of a bitcoin IRA investment, however, it helps to learn about the benefits of investing in bitcoin and bitcoin-related trends you should know about.

Why You Should Consider Bitcoin IRA Investments

If you are interested in long-term bitcoin investments, you might want to consider purchasing bitcoin with a self-directed IRA. In self-directed IRAs, you choose, invest in and manage each asset in your account. No brokers, no financial advisors—just you. The assets in these individual retirement accounts are based on Bitcoin blockchain technology and a vigorous open source software community that is committed to keeping the Bitcoin network efficient and bitcoin value strong.

Although you are in charge, when you work with BitIRA to purchase bitcoin for your IRA, you create a new IRA account with the Preferred Trust Company, a certified self-directed IRA custodian. They will provide all the administrative duties for your account, including making any required financial disclosures to the government.

Tax-deferred returns. If you set up a self-directed IRA and follow IRS guidelines, you can maximize your retirement investments by taking advantage of tax-deferred returns. This means that you can buy and sell bitcoin or hold it as a long-term investment. Taxes on profits will wait until you take money out of your retirement fund, provided you’ve followed all the rules and regulations.

Protection against losses in stock value. By investing in bitcoin, you’re diversifying beyond conventional IRA assets, which mostly follow trends in the value of the stock market. Cryptocurrency investing is different. It’s a brand-new asset class, so be sure that you understand the pros and cons of using bitcoin for this purpose.

View this video to learn why some investors are attracted to Bitcoin IRAs:

Long-Term Investment Value

The potential for short-term financial benefits is just part of a bitcoin IRA’s value. A ruling by the IRS in 2014 also opened the door to make bitcoin IRAs an attractive long-term investment. The U.S. tax code permits a wide variety of assets within IRA accounts, including bitcoin investments. Under current code, you can choose from a range of:

IRA classifications. A bitcoin-based IRA can be set up with any of the classifications that you are used to, such as Traditional, Roth, SEP and SIMPLE IRA accounts.

What Investors Like About Bitcoin

There are many differences between bitcoin and other non-currency investments. These are what make bitcoin attractive to investors.

Bitcoin Is Decentralized

This means that there is no need for a middleman to verify or vouch for transactions. This approach completely bypasses most laws regarding fund transfers, ensures that you won’t have to worry about chargebacks, and makes it impossible for someone to charge you without your permission.

Value Isn’t Controlled by Third-Party Organizations

The only parties who control bitcoin value are bitcoin buyers and sellers. It can’t be controlled by any government; it also means that its value is not tied to the rise and fall of any government’s legal tender. This makes bitcoin an attractive alternative to gold in countries experiencing social and financial unrest.

Bitcoin Trends You Should Know About

Investing in cryptocurrencies to achieve short-term objectives is not for the faint-hearted. Rapid changes in Bitcoin value and technology are common. But, changing trends continue to make bitcoin the most popular digital currency, especially with US millennials.

Longer-term market and government behavior can affect bitcoin’s role as a currency and an asset. Check out these recent financial and market trends before you invest.

Growing Popularity as an Investment

First developed as a currency, bitcoin now captures investor interest as an asset to be kept long term and added to investment portfolios, such as an IRA.

Investors continue to learn about the potential of blockchain technology and are paying more attention to old-fashioned financial fundamentals. The result: growing interest in bitcoin as an investment.

How might these trends affect investor decision making? Investors usually choose the asset with the best chance to build and keep long-term value. These days, more people are choosing bitcoin as a sort of gold, not as a way to pay for an extremely expensive cup of coffee.

Bitcoin Technology Is Getting an Upgrade

In June 2018, a beta of the Lightning Network went public. This upgrade of Bitcoin technology is designed to make the Bitcoin payment network much more efficient. So far, standards have been adopted, and there is a report of an actual purchase of physical goods using Lightning.

These tests prove that developers are improving Bitcoin technology. Much of bitcoin value depends on its network performance, which should keep transfers fast and transfer fees low. That makes speed and efficiency of Bitcoin transactions an important part bitcoin attractiveness as a retirement account asset.

Members of the Bitcoin open source community are making these changes to keep bitcoin competitive with newer cryptocurrencies such as Ripple and Ethereum. The success of these upgrade projects will affect Bitcoin network capabilities and the attractiveness of bitcoin as an investment.

Add the Granddaddy of Digital Currencies to Your IRA

Our bitcoin-based, Self-Directed IRA is just one of our full-service solutions and a great way to participate in the exciting cryptocurrency market. You can find information about setting up a cold storage, cryptocurrency-based retirement account here.

If you have questions about cryptocurrencies or qualifying for IRA-based tax deferrals, contact us today at (800) 299-1567 to get started.

Important Disclaimer: Pricing data (and resulting portfolio valuation and performance data) displayed on the Site are provided by or based on information provided by one or more exchanges, may be delayed or otherwise not up to date, may be incorrect, and there is no guarantee that any amount of Digital Currency can be purchased or liquidated for the price indicated. No price is guaranteed until the transaction is settled.

All pricing and other information (including portfolio valuation and performance data) on the Site is provided on an "as is" basis for your personal information only, no representations are made as to the accuracy of such information, and you agree not to rely upon such information for any purpose. BitIRA (a) expressly disclaims the accuracy, adequacy, or completeness of any pricing or valuation or performance data displayed and (b) shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. BitIRA shall not be liable for any damages relating to your use of the information provided on the Site.

All transactions must be verbally confirmed, are subject to BitIRA's Customer Transaction Agreement, and additional documentation confirming the transaction will need to be executed before a transaction will be processed.

Important Tax Considerations: BitIRA is not a legal or tax professional and does not provide legal or tax advice. It is BitIRA's understanding that Digital Currencies may be held in an individual retirement account, but if you have any questions regarding the legal rules applicable to individual retirement accounts, including which assets may be held in such an account, you should contact a legal or tax advisor. BitIRA makes no representation or warranty that purchasing Digital Currency for placement in an individual retirement account complies with government regulations or statutes or that current rules and statutes (or the interpretation of existing rules and statutes) will not change.

Important Investment Considerations: In BitIRA's opinion, Digital Currencies are a highly speculative investment, and anyone considering purchasing Digital Currency should have the financial flexibility and resources, and the risk tolerance, to lose the entire investment. BitIRA does not offer any opinion as to which Digital Currency(ies) to purchase, in what amount, and for how long a customer should hold such Digital Currency. Nor does BitIRA offer any opinion as to what percentage, if any, of a customer's portfolio should be devoted to alternative and highly speculative investments like Digital Currency. Historical performance is no guarantee of future results. BitIRA does not guarantee or represent that anyone purchasing Digital Currency will make a profit.

BitIRA is not an investment specialist, tax specialist, financial planner (certified or otherwise), or retirement advisor, and BitIRA does not provide investment advice, tax advice, financial planning services, or retirement planning or retirement-specific advice. BitIRA facilitates the purchase of Digital Currency, nothing more, and charges a fee for the service it provides (based on the transaction value). No fiduciary relationship, broker dealer relationship, principal agent relationship or other special relationship exists between BitIRA and its customers.

Customers purchasing or liquidating Digital Currency make all investment decisions.